Oracle Financials Cloud: Accounts Payable 2017 Implementation Essentials — Question 56

You have an invoice for $200 USD and a credit memo for $225 USD. In other words, the credit amount exceeds the invoice amount. If you enable the option to apply credits up to zero amount payment, then how will the invoice and credit memo be paid?

Answer options

• A. Neither the invoice nor the credit memo are included in the payment process request because the credit reduces the payment amount below zero.
• B. Both the invoice and the credit memo are paid and a refund of $25 USD is created.
• C. Both the invoice and credit memo are included in the payment process request for a payment amount of $0 USD. The credit memo is partially paid with a remaining credit of $25 USD.
• D. Both the invoice and the credit memo are selected and the Payment Process Request requires attention.

Correct answer: C

Explanation

The correct answer is C because enabling the option to apply credits up to zero allows for the credit memo to be partially applied against the invoice, resulting in a zero payment and leaving a remaining credit balance. Option A is incorrect as the payment process does include the invoice and credit memo; Option B is incorrect as no refund is created; Option D is misleading, as the payment process does not require further attention in this scenario.